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HomeMy WebLinkAbout2026_02_11_BOER_Minutes Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF MINUTES Orange County Board of Equalization and Review Meeting held on February 11, 2026 Board Members in attendance: Chair of the Board Leon Meyers Yes Regular Member Saru Salvi No Regular Member Richal Vanhook Yes Alternate Member Shareese Alston No Alternate Member Hunter Beattie No Alternate Member Tony Blake No Alternate Member Vaughn Compton No Alternate Member Shannon Julian Yes Alternate Member Barbara Levine No Orange County Staff in attendance: Tax Administrator Nancy Freeman Office Assistant Jennifer Rigsbee Deputy Tax Assessor Chad Phillips Real Property Appraisal Manager Roger Gunn Temporary Appraiser Assistant Rob Teachout Appraiser C le Anderson Meeting Schedule: No. Time Appellant PIN or Abstract Appeared Appeal Type 1 1:01PM Kinfolks Collaborative, LLC 9864348855 No Value-Real 2 1:07PM Kinfolks Collaborative, LLC 9864349846 No Value-Real 3 1:08PM Cecelia Conway 9852904475 No Value-Real 4 2:06PM Ramar Land Corporation 9834561717 Yes Value-Real 5 2:20PM MFREVF IV Meadowmont LP 9798733687 Yes Value-Real 6 2:27PM R01B RTP LLC 9799034445 Yes Value-Real 7 2:36PM DT Retail Properties LLC 9873596043 Yes Value-Real 8 2:45PM RRPV University Chapel Hill LP 9799220621 Yes Value-Real 9 3:09PM DRMTA LLC 9799362298 Yes Value-Real 10 3:15PM DRMTA LLC 9799366150 Yes Value-Real 11 3:16PM Chapel Hill Foundation Real 9788268572.006 Yes Value-Real Estate Holdings Inc. 12 3:38PM Chapel Hill Foundation Real 9788268572.007 Yes Value-Real Estate Holdings Inc. 13 4:15PM Chapel Hill North Station 9880270438 Yes Value-Real Outparcel LLC 14 4:05PM Chapel Hill North Station LLC 9880275036 Yes Value-Real 15 4:11PM TGAP The Warehouse At CH 9788271139 Yes Value-Real Owner LLC 1 Docusign Envelope ID:41A5C043-OEBB-4B4B-BB6A-9411707F7CAF Time B Meeting called to order 1:01 PM Leon Meyers Meeting adjourned 4:28 PM Richal Vanhook Related meeting notes: Per the Board's request in a prior meeting, Tax leadership (Chad and Nancy) presented an overview of the Board ordered neighborhood review project. Property Identification: Property Owner Kinfolks Collaborative, Appellant(if different) Andrew Simpson, LLC Attorney Property Address 1207 Ashe Street Parcel ID or Abstract 9864348855 Statement of Appeal: Request reduction in value. No supporting documentation provided. Current Assessed Value $336,500 ounty Opinion $312,500 Time of Hearin 1:01 PM Appellant Opinion $267,330 County Representative C le Anderson Board Decision $312,500 Evidence submitted by the appellant: • As of February 5th,2026,no supporting documentation has been received with this appeal. Evidence submitted by the county representative: • The subject property is a 0.16-acre tract improved with a 1,352 square foot single family dwelling located at 207 Ashe Street in Hillsborough. • County staff reviewed a sales analysis of recently sold C-graded homes within the subject's neighborhood. This analysis included the sale of the subject property(TMLS#10018533), which sold in combination with the adjacent vacant lot identified as PIN 9864349846, also currently under appeal. Together,the two parcels have a combined lot size of 0.33 acres and a combined assessed value of$408,500. The combined properties sold for$456,500 on April 1, 2024. • After review, staff recommends applying a-20%land adjustment to both the subject property and the adjacent vacant lot(PIN 9864349846). The proposed adjustment would reduce the subject property's assessed value to $312,500 and reduce the combined assessment to $405,500. The County recommends a revised assessed value of$312,500 for the subject property. • Photo of Subject • GIS Map • MLS data(screenshot) • Deed/tax stamps (screenshot) • Sales analysis • Current Property Record Card • Proposed Property Record Card 2 Docusign Envelope ID:41A5C043-OEBB-4B4B-BB6A-9411707F7CAF Motion of the Board Accept Count 's Proposed Value: $312,500 Made the motion Shannon Julian Seconded the motion Leon Meyers Voted For Richal Vanhook Voted Against ... Property Identification: Property Owner Kinfolks Collaborative, Appellant(if different) Andrew Simpson, LLC Attorney Property Address Unimproved 0.17-acre Parcel ID or Abstract 9864349846 parcel on Ashe Street Statement of Appeal: Request reduction in value. No supporting documentation provided. Current Assessed Value $120,000 ounty Opinion $96,000 Time of Hearin 1:07 PM Appellant Opinion $60,000 County Representative C le Anderson Board Decision $96,000 Evidence submitted by the appellant: • As of February 9th,2026, no supporting documentation has been received with this appeal. Evidence submitted by the county representative: • The subject property is a 0.17-acre vacant lot located adjacent to 207 Ashe Street in Hillsborough. • Because the subject property sold in combination with the adjacent improved parcel identified as PIN 9864348855, County staff reviewed a sales analysis using the combined properties. Staff reviewed recent sales of comparable properties within the subject's neighborhood, including the sale of the subject property(TMLS #10018533),which sold in combination with the adjacent parcel, also currently under appeal. Together,the two parcels have a combined lot size of 0.33 acres and a combined assessed value of$408,500. The combined properties sold for$456,500 on April 1,2024. • After review, staff recommends applying a-20%land adjustment to both the subject property and the adjacent parcel(PIN 9864348855). The proposed adjustment would reduce the subject property's assessed value to $96,000 and reduce the combined assessment to$408,500. • After applying the-20%land adjustment,the County recommends a revised assessed value of $96,000 for the subject property. • GIS Map • MLS data(screenshot) • Deed/tax stamps (screenshot) • Sales analysis • Current Property Record Card • Proposed Property Record Card 3 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Motion of the Board Accept Count 's Proposed Value: $96,000 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against ... Property Identification: Property Owner Cecelia ConwayAppellant(if different) Property Address 5 Acres on Borland Road Parcel ID or Abstract 19852904475 Statement of Appeal: Request reduction in value based on topography and a cash offer. Current Assessed Value $240,800 ounty Opinion $192,600 Time of Hearin 1:08 PM Appellant Opinion Not provided County Representative C le Anderson Board Decision $240,800 Evidence submitted by the appellant: • The appellant states that the subject tract has steep slopes, a septic issue, and power lines across the front of the property. The appellant also states that there is no water or sewer connection. The appellant submitted an unsolicited cash offer from an investor as supporting documentation. Evidence submitted by the county representative: • The subject property is a 5-acre tract of vacant land located off Borland Road in Hillsborough. The appellant states that there are several issues affecting the usability and value of the property and provided a cash offer from an investor dated March 27, 2025,in the amount of $155,750 as supporting documentation. • County staff reviewed the appellant's claims and supporting evidence. The offer to purchase was submitted by an investor seeking to acquire land at a discounted rate and is therefore not considered to be reflective of true market value.Additionally,the offer is dated March 27, 2025, which is after the revaluation date and was not considered by staff. • County staff also reviewed a sales analysis of recently sold vacant tracts within the subject's neighborhood. Based on this analysis,the County recommends applying a—10%land adjustment to account for the presence of power lines on the property. This proposed adjustment would result in a revised assessed value of$216,700 for the subject property. • Additional PERC evidence provided by the appellant pre-hearing prompted a further-20% recommended land adjustment,revising the recommended County-recommended value to $192,600. • GIS Map • Sales analysis • Current Property Record Card • Proposed Property Record Card Motion of the Board No Change in Assessed Value $240,800 Made the motion Leon Meyers 4 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Seconded the motion Shannon Julian Voted For Richal Vanhook Voted Against ... Property Identification: Property Owner DT Retail Properties LLC Appellant(if different) Morgan Fowler/Ryan, LLC Property Address 1510 Buckhorn Road Parcel ID or Abstract 9834561717 Statement of Appeal: Request reduction in value based on land values of equity comparables. Current Assessed Value $12,966,600 County Opinion $18,522,300 Time of Hearin 2:06 PM Appellant Opinion $4,082,442 County Representative Roger Gunn Board Decision $18,522,300 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on land values of equity comparables. Evidence submitted by the county representative: • The County's attached comparable sales and detailed commercial property appraiser consultant's value analysis concludes a valuation of the subject property of approximately $18,533,500. Applying the County's schedule of values,the County recommends increasing the land market adjustment of the subject from+138%to+240%which would result in a revised assessed value of$18,522,300. • GIS Map of Subject • Current Property Record Card(8 pages) • Recommended Property Record Card(8 pages) • Comparable Sales • Commercial Appraiser Consultant's Value Analysis (2 pages) Motion of the Board Accept County's Proposed Value: 1 $18,522,300 Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Property Identification: Property Owner MFREVF IV Appellant(if different) Morgan Fowler/Ryan, Meadowmont LP LLC Property Address 1302 Village Crossing Parcel ID or Abstract 9798733687 Drive 5 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Statement of Appeal: Request reduction in value based on a market proforma income approach also considering the valuation of Durham County's portion of the apartment property. Current Assessed Value $5,422,100 ounty Opinion $5,422,100 Time of Hearin 2:20 PM Appellant Opinion $3,843,033 County Representative Roger Gunn Board Decision $5,422,100 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma income approach also considering the valuation of Durham County's portion of the apartment property. Evidence submitted by the county representative: • The subject contains 19 units of the 258-unit project known as The Reserve at Meadowmont in Chapel Hill. The remaining 239 units are located in and are assessed by Durham County. The units were constructed in 2000. The property is currently assessed at$5,422,100 or$285,374 per unit. • Up until the most recent purchase, for$324,031 per unit in late 2023,this complex performed quite well. After the purchase,not nearly as well with rents being flat and vacancy rising. • The appellant has made an argument using the overall assessment from Durham and Orange to suggest that since the November 2023 purchase,post the interest rate spike, has decreased from $83,600,000 ($324,000 per unit)to$55,671,500 ($216,000 per unit). This is not reasonable. The appellant suggests the Orange County portion would be roughly$202,000 per unit,which is even further undervalued. A buyer would understand that the performance by the previous management was very good for years and would consider the upside potential, even if the current performance is poor. • Upon review of the December rent roll,but without the benefit of any Income and Expense data, it appears like the Orange County assessment,bracketed by the Income and Sales Approaches and considering the previous sale, is well supported. The Durham tax assessment (nor the total assessment with both Counties totaled)does not have bearing on the Orange County assessment of the part of the property in Orange County. • As a result, no change in value is supported. • GIS Map of Subject • Current Property Record Card(8 pages) • Comparable Sales and Income Approach Motion of the Board No Change in Assessed Value $5,422,100 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against Property Identification: Property Owner ROIB RTP LLC Appellant(if different) Morgan Fowler/Ryan, LLC Property Address 1516 E.Franklin Street Parcel ID or Abstract 9799034445 6 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Statement of Appeal: Request reduction in value based on a market proforma. Current Assessed Value $4,240,500 County Opinion $3,937,200 Time of Hearin 2:27 PM Appellant Opinion $2,342,062 County Representative Roger Gunn Board Decision $3,937,200 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma. Evidence submitted by the county representative: • The subject is a 20,272 square feet office building built in 1995 and has an assessed value of $4,240,500 or$209.18 per square foot. This office building exhibits relatively poor financial performance, but the agent has used high management expenses and a high capitalization rate for the Chapel Hill-Carrboro market(see attached historical office capitalization rates)which weakens the appeal. However,the County's analysis does suggest that an adjustment to value is warranted. From the County's income approach, a value of approximately$3,967,000 is indicated. Applying the County's schedule of values,the County recommends increasing the external(demand) depreciation on the subject building from 34%to 40%which would result in a revised assessed value of$3,937,200 or$194.22,which is well supported by recent comparable office sales in the area. • GIS Map of Subject • Current Property Record Card(2 pages) • Proposed Property Record Card(2 pages) • Comparable Sales and Income Approach • Chapel Hill-Carrboro Capitalization Rates Motion of the Board Accept County's Proposed Value: $3,937,200 Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Property Identification: Property Owner DT Retail Properties LLC Appellant(if different) Morgan Fowler/Ryan, LLC Property Address 619 Hampton Pointe Parcel ID or Abstract 9873596043 Boulevard Statement of Appeal: Request reduction in value based on a market proforma income approach and equity comparables. Current Assessed Value 1 $2,003,100 County Opinion $2,003,100 7 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Time of Hearin 2:36 PM Appellant Opinion $1,430,104 County Re resentative Roger Gunn Board Decision $2,003,100 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma income approach and equity comparables. Evidence submitted by the county representative: • The subject is a 10,010 square foot retail building on a 2-acre tract located in Hillsborough that was constructed in 2014. • Based on the attached Income Approach and the County's commercial property appraiser consultant's analysis,the current valuation is supported and no change in value is recommended. • GIS Map of Subject • Current Property Record Card(2 pages) • Income Approach • Commercial Property Appraiser Consultant's Analysis(2 pages) Motion of the Board No Change in Assessed Value 1 $2,003,100 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against Property Identification: Property Owner RRPV University Chapel Appellant(if different) Morgan Fowler/Ryan, Hill LP LLC Property Address 1201 S. Estes Drive Parcel ID or Abstract 9799220621 Statement of Appeal: Request reduction in value based on the prior improvement value and cost of new improvements and land values of other area shopping centers. Current Assessed Value $104,313,300 ounty Opinion $93,532,200 Time of Hearin 2:45 PM Appellant Opinion $59,234,726 County Representative Roger Gunn Board Decision $93,532,200 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on the prior improvement value and cost of new improvements and land values of other area shopping centers. Evidence submitted by the county representative: • The County's attached detailed commercial property appraiser consultant's value analysis concludes a valuation of the subject property of approximately$93,484,201. Applying the 8 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF County's schedule of values, the County recommends decreasing the land market adjustment of the subject from+98%to+62%which would result in a revised assessed value of$93,532,200. • GIS Map of Subject • Current Property Record Card(30 pages) • Proposed Property Record Card(30 pages) • Commercial Appraiser Consultant's Value Analysis Motion of the Board Accept County's Proposed Value: $93,532,200 Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against ... Property Identification: Property Owner DRMTA LLC Appellant(if different) Morgan Fowler/Ryan, LLC Property Address 1726 Fordham Boulevard Parcel ID or Abstract 9799362298 Statement of Appeal: Request reduction in value based on a collective market proforma with an allocated value of$655,967 for this parcel. Current Assessed Value $818,800 ounty Opinion $818,800 Time of Hearin 3:09 PM Appellant Opinion $655,967 County Representative Roger Gunn Board Decision $818,800 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a collective market proforma for PINS 9799362298 and 9799366150 with a requested combined valuation of$18,096,206 and an allocated value of$655,967 for this parcel. Evidence submitted by the county representative: • The subject is a 2,712 square feet strip shopping center built in 2016 and has an assessed value of$818,800 or$301.92 per square foot. • The agent analyzes the value of this property collectively with the larger 108,918 square feet shopping center on PIN 9799366150. The agent has presented an Income Approach with actual rents and has applied expenses that are unsupported. • Like the agent,the County has valued the two properties collectively relying primarily on the Income Approach. The County has used the actual rents and applied 5%vacancy, similar to the agent, and applied expenses that are market based. The capitalization rate,which differs significantly from the agent is supported by actual capitalization rates from local shopping center sales. The combined indication of value from the County's income approach is $22,151,838,which is slightly below the$22,588,300 combined assessed values of the two parcels. However, area shopping center sales indicate a higher valuation and brackets the County's combined valuation. Area shopping center sales are presented as additional support 9 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF including the 2021 sale of nearby Eastgate,which although earlier in time of sale is included to show the strength of location for a shopping center in this high barrier to entry market. • From the County's analysis,the appeal is unsupported and no change in value is recommended. • GIS Map of Subject • Current Property Record Card(2 pages) • Comparable Sales and Income Approach Motion of the Board No Change in Assessed Value $818,800 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against ... Property Identification: Property Owner DRMTA LLC Appellant(if different) Morgan Fowler/Ryan, LLC Property Address 1720 Fordham Boulevard Parcel ID or Abstract 9799366150 Statement of Appeal: Request reduction in value based on a collective market proforma with an allocated value of$17,440,239 for this parcel. Current Assessed Value $21,769,500 ounty Opinion $21,769,500 Time of Hearin 3:15 PM Appellant Opinion $17,440,239 County Representative Roger Gunn Board Decision $21,769,500 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a collective market proforma for PINS 9799362298 and 9799366150 with a requested combined valuation of$18,096,206 and an allocated value of$17,440,239 for this parcel. Evidence submitted by the county representative: • The subject is a 108,918 square feet shopping center built in 1984 and 1991 and has an assessed value of$21,769,500 or$199.87 per square foot. • The agent analyzes the value of this property collectively with the smaller 2,712 square feet strip shopping center on PIN 9799362298. The agent has presented an Income Approach with actual rents and has applied expenses that are unsupported. • Like the agent,the County has valued the two properties collectively relying primarily on the Income Approach. The County has used the actual rents and applied 5%vacancy, similar to the agent, and applied expenses that are market based. The capitalization rate,which differs significantly from the agent is supported by actual capitalization rates from local shopping center sales. The combined indication of value from the County's income approach is $22,151,838,which is slightly below the$22,588,300 combined assessed values of the two parcels. However, area shopping center sales indicate a higher valuation and brackets the County's combined valuation. Area shopping center sales are presented as additional support 10 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF including the 2021 sale of nearby Eastgate,which although earlier in time of sale is included to show the strength of location for a shopping center in this high barrier to entry market. • From the County's analysis,the appeal is unsupported and no change in value is recommended. • GIS Map of Subject • Current Property Record Card(8 pages) • Comparable Sales and Income Approach Motion of the Board No Change in Assessed Value $21,769,500 Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against ... Property Identification: Property Owner Chapel Hill Foundation Appellant(if different) Morgan Fowler/Ryan, RE Holdings Inc. LLC Property Address 143 W. Franklin Street Parcel ID or Abstract 9788268572.006 Statement of Appeal: Request reduction in value based on an income approach based on actual income and market proforma. Current Assessed Value $24,446,700 ounty Opinion $18,360,200 Time of Hearin 3:16 PM Appellant Opinion $11,180,000 County Representative Roger Gunn Board Decision $18,360,200 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on an income approach that is based on actual income and market proforma. Evidence submitted by the county representative: • The subject is a set of retail condos located on the ground floor of the larger Carolina Square project in downtown Chapel Hill. The appellant utilizes a square footage of 46,022 square feet, while tax records list a total of 73,705 finished square feet. The appellant has requested a value of$11,180,000 or approximately$243 per square foot based on their square footage figure. • Based on the rent roll provided by the appellant, the subject's average lease rate appears to lag market rates primarily due to the large space occupied by the anchor tenant, Target. Larger retailers such as this, occupying large retail spaces tend to have lease rates lower than the average, as they occupy a much larger than average space. This appears to be reasonable and an average lease rate of$24.25 per square foot per year has been utilized for the purpose of this analysis. • Average vacancy rates for retail space in Orange County is significantly lower than the 10% used by the appellant. As the current rent roll only provides a snapshot of the current vacancy, a rate of 5%is used,which is somewhat closer to the sub-market average. It is also worth noting that this property has good parking. Additionally, 5%management and reserves 11 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF expenses are accounted for, which is a much more typical expense when compared to the non- recoverable 10%expenses indicated by the appellant. • The Net Operating Income is capitalized at a rate of 5.5%. This rate is reasonable based on the age of the subject and its prime location and is selected relative to a broad set of retail sales in downtown Chapel Hill over the past 10 years. The result would indicate a value of $18,313,095 or approximately$398 per square foot based on the square footage listed in the County tax records. • As a result of this analysis, applying the County's Schedule of Values,the County recommends changing the grade of all buildings from A+40 to A and the E02 economic modifier on the property to E08 which would result in a revised value of$18,360,200. • GIS Map of Subject • Current Property Record Card(8 pages) • Proposed Property Record Card(8 pages) • Income Approach • Downtown Chapel Hill-Carrboro Capitalization Rates Motion of the Board Accept County's Proposed Value: $18,360,200 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against Property Identification: Property Owner Chapel Hill Foundation Appellant(if different) Morgan Fowler/Ryan, RE Holdings Inc. LLC Property Address 1 123 W. Franklin Street Parcel ID or Abstract 9788268572.007 Statement of Appeal: Request reduction in value based on an income approach using a market profonna. Current Assessed Value $10,378,400 County Opinion $8,594,600 Time of Hearin 3:38 PM Appellant Opinion $8,110,000 County Representative Roger Gunn Board Decision $8,594,600 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on an income approach using a market proforma. Evidence submitted by the county representative: • The County's income approach analysis provides a value of$8,660,341 for the subject property. As a result, applying the County's Schedule of Values, the County recommends increasing the E36 economic market adjustment on the property to E47 which would result in a revised value of$8,594,600 for the subject property. • GIS Map of Subject • Current Property Record Card(14 pages) • Proposed Property Record Card 14 pages) 12 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF • Income Approach Motion of the Board Accept Count 's Proposed Value: $8,594,600 Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against ... Property Identification: Property Owner Chapel Hill North Station Appellant(if different) Morgan Fowler/Ryan, Out parcel LLC LLC Property Address 1880 Martin Luther King Parcel ID or Abstract 9880270438 Jr. Boulevard Statement of Appeal: Request reduction in value based on equity land comparables. Current Assessed Value $1,355,100 County Opinion $1,355,100 Time of Hearing Appellant Opinion $761,395 County Representative Roger Gunn Board Decision $1,355,100 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on equity land comparables. Evidence submitted by the county representative: • The subject is a 2.02 acre(87,991 square feet)vacant outparcel of the Chapel Hill North shopping center regarded as excess land. It is assessed at$15.40 per square foot or$670,842 per acre. • The appellant has provided an equity argument for the out-parcel's value. An analysis of the equity comparables is detailed below. 1.) 150 Adair Drive—Unbuildable. Misleading. 2.) 121 N Elliott Road.—Zoned residential. Misleading. 3.) 3 Couch Road—Dead end road with no paved access. No proximity to retail. Misleading. 4.)Lot 2,Kingston Drive—Office zoned land with flood plain and riparian buffer. Far inferior. 5.) 101 Kingston Drive—Office zoned, but frontage on a corner. Could be relevant. Has its own issues. Supports the assessed value. • Based on the evidence presented, no relevant data is presented to support a change in value. • GIS Map of Subject • Current Property Record Card(2 pages) • Comparable Sales and Income Approach Motion of the Board No Change in Assessed Value $1,355,100 Made the motion Shannon Julian Seconded the motion Richal Vanhook 13 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Voted For All BOER Members Voted Against Property Identification: Property Owner Chapel Hill North Station Appellant(if different) Morgan Fowler/Ryan, LLC LLC Property Address 1838 Martin Luther King Parcel ID or Abstract 9880275036 Jr. Boulevard Statement of Appeal: Request reduction in value based on a market proforma income approach. Current Assessed Value $17,720,900 ounty Opinion $20,089,700 Time of Hearin 4:05 PM Appellant Opinion $15,249,357 County Representative Roger Gunn Board Decision $20,089,700 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma income approach. Evidence submitted by the county representative: • The subject is a 95,261 square feet shopping center on 13.39 acres built in 1998. The property currently has an assessed value of$17,720,900 or$186.02 per square foot. It is 100%occupied and is anchored by a Harris Teeter supermarket. • The appellant provides a rent roll,but no Income and Expense information. They provide an Income Approach to value using actual rents. They use a high non-recoverable expense of 15%with nothing to support it. The capitalization rate used in their analysis is 8.5%,which is high for Chapel Hill and much higher than actual sales in the area in the low to mid 7%range. Overall, the analysis needs more support. • The County has used sales and income approaches to value the property. The two main differences between the County's income Approach and the Appellant's income approach is non-recoverable expenses, where the County uses 5%,which is reasonable for a center with significant inline spaces and an anchor that is paying TICAM reimbursements,and the capitalization rate chosen. Harris Teeter centers tend to fare better than many other types of centers. Given the local comparables and the location,the County has used a 7.5%rate. Based on the County analysis,primarily the Income Approach,the indicated value of the shopping center is higher than the current assessed value at $20,087,098. • Applying the County's schedule of values, the County recommends removing the existing E20 economic modifier on the property and instead applying 20% economic depreciation to the structures. This would result in a revised value of$20,089,700 or$210.89 which is well supported by comparable area shopping center sales. • GIS Map of Subject • Current Property Record Card(6 pages) • Proposed Property Record Card(6 pages) • Comparable Sales and Income Approach Motion of the Board Accept County's Proposed Value: $20,089,700 14 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Made the motion Richal Vanhook Seconded the motion Shannon Julian Voted For All BOER Members Voted Against Property Identification: Property Owner TGAP The Warehouse at Appellant(if different) Morgan Fowler/Ryan, CH Owner LLC LLC Property Address 1316 W. Rosemary Street Parcel ID or Abstract 9788271139 Statement of Appeal: Request reduction in value based on a market proforma income approach and uniformity with other student apartment properties. Current Assessed Value $29,150,500 ounty Opinion $29,150,500 Time of Hearin 4:11 PM Appellant Opinion $26,286,300 County Representative Roger Gunn Board Decision $29,150,500 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma income approach and uniformity with other student apartment properties. Evidence submitted by the county representative: • The subject is a 56-unit,215 bed student apartment complex in downtown Chapel Hill known as The Warehouse Apartments that was constructed in 1999. • Based on the attached Income Approach and the County's commercial property appraiser consultant's analysis,the current valuation is supported and no change in value is recommended. • GIS Map of Subject • Current Property Record Card(4 pages) • Income Approach • Commercial Property Appraiser Consultant's Analysis(4 pages) Motion of the Board No Change in Assessed Value 1 $29,150,500 Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Consent Agenda: Motion of the Board Accept Proposed Consent Agenda?: Yes Made the motion Richal Vanhook 15 Docusign Envelope ID:41A5C043-OEBB-4B4B-BB6A-9411707F7CAF Seconded the motion Shannon Julian Voted For All BOER Members Voted Against ... ... Notes: See attached Consent Agenda Chair of the d,'signed by: Leon Meyers Frsx3ce 2/13/2026 Recording Sec Qfyaby: Rob Teachout �� /13/2026 16 Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF CONSENT AGENDA Orange County Board of Equalization and Review February 11, 2026 Parcel ID Owner Current Value Recommended Reason for change Date Name Value Signed 9835338623 George D. $231,600 $196,600 Staff recommends reducing the Effective Year Built from 1994 to 1979, 2/9/2026 Swann reducing the condition from average to fair and applying 10%physical depreciation (for failing septic system). 17